Washington (US): As investors start to lose faith in its loss-making, billion-dollar metaverse dream, Meta (previously Facebook) has reported another quarterly revenue fall.
The third quarter (Q3) saw a 4% year-over-year fall in Meta’s sales, which came in at $27.7 billion. In comparison to last year, the corporation reported a net income of $4.395 billion, a decrease from $9.194 billion.
This fall can be attributed to Meta’s massive losses in Reality Labs, its virtual reality branch, which posted a $3.672 billion loss in the third quarter.
The next computing platform still needs to be built, which will take time. But it’s obvious that we’re taking the lead here. It will likely take several iterations of each product before they gain widespread acceptance because this is a huge operation. Mark Zuckerberg, CEO of Meta, stated at an earnings call on Wednesday.
However, according to Meta CFO David Wehner, some of the revenue reduction is a result of inflation.
The company’s revenue in Q2 2022 was $28.82 billion, down 1% from $29.07 billion in the corresponding quarter of 2021.
Currently, there are 2.96 billion monthly active users and 1.98 billion daily active users on Facebook.
The corporation, which is actively working to reduce its employment, had 87,314 employees as of September 30, an increase of 28% over the previous year.
Investors in the metaverse have urged the corporation to stop making investments in the metaverse and cut its employment by at least 20%.
Altimeter Capital Chair and CEO Brad Gerstner sharply criticised Meta CEO Mark Zuckerberg, claiming that the social network needed to cut costs even further.